Greeting to all,
We received sales tax refund from state government paid in 3 years back.(actually it paid for machinery purchase) I want to know hw to accounting for above. Any Income Tax rules to be noted for this?
Kindly guide me.
Regards
M.RamKumar
How to Account for Sales Tax Refund on Machinery: Income or Adjust Recoverable Taxes? A user inquired about accounting for a sales tax refund received from the state government, initially paid for machinery purchase three years prior. Two responses were provided. The first suggested treating the refund as income since the sales tax was originally booked as an expenditure. The second response detailed accounting entries: initially recording the VAT paid as an expense, transferring it to a recoverable taxes account, and, upon receiving the refund, crediting the bank account and debiting the recoverable taxes account. (AI Summary)
Accounting - Auditing
TaxTMI 
TaxTMI 
TaxTMI 
